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It’s extremely frustrating when you are constantly turned down for a credit card.Having a credit card could actually improve your credit score in the long run and make it easier for you to obtain credit in the future if you manage the card responsibly. But if you know, or at least suspect, that you have a bad credit rating, how do you go about getting a credit card?
Credit cards for bad credit are available from providers who specialise in helping people with a less than perfect credit history. They can offer you a line of credit so you can make large purchases and spread the cost of repayment. They do charge higher than usual interest rates between 25% and 40% APR (Annual Percentage Rate) and the credit limit may be quite low to begin with. Assuming you do not have any County Court Judgements (CCJs) against you or have not been declared Bankrupt, they are worth trying.
The only other options in credit cards for people with bad credit generally seem to be either prepaid credit cards or secured credit cards.Prepaid cards are not really “credit cards” as there’s no credit (you spend your own money) and no credit checks required.Your “credit limit” is whatever you decide to put on them, so it’s impossible for the card to go over limit.Secured credit cards require you to pay a deposit that the card issuer will hold to cover defaults or non payment.You cannot touch that deposit and you won’t get the credit card until you’ve paid it.Some providers require the deposit to be 100% of the credit limit you desire.
Since there’s no way you can avoid a credit check if you want plastic then these bad credit credit cards are probably the best option if you have adverse data on your credit file.These specialist lenders will consider your individual circumstances as well as your financial position and history. These cards can help you to establish and improve your credit rating over time by demonstrating that you can manage credit successfully. In due course, you’ll then be able to apply for more competitive “regular” credit card deals.Although acceptance can never be 100% guaranteed you do have a much better chance of being accepted with these providers.